The rollercoaster in global equity markets continued in full swing in the second week of August, typically a period of lesser important news and interest in the markets.
The markets changed direction 4 times this week and traded a $12 range, the second largest this year.
In the mix on the positive side were news from US President Trump, delaying tariffs on Chinese imports that triggered a sharp move higher Tuesday, then the euphoria turned to depression when markets turned sharply lower Wednesday when short term bonds yields curve showed an alarming recession signal then the markets reversed higher Thursday and Friday to close the week near the flatline. Semiconductors stocks continued to be the focus for technology investors while the retail sector suffered another big setback this week and looks to be the most vulnerable sector ahead, if the US China trade disputes are not going be resolved soon.
Despite the higher than expected volatility and better than average trading volumes the markets are trading only 5% bellow all time highs levels achieved just a month ago.
Around the globe, markets did not fare as well as US markets, The German DAX traded lower for the 3rd week in a row, the Argentinian stock market and currency plunged 25% after alarming election polls and the overall negative sentiment in global markets turned investors towards "safe heaves" – the best performing segment so far this month.
Gold prices closed at 6-year highs, $1,513 per ounce, the Japanese Yen is trading at 2019 highs versus majors and Silver prices skyrocketed to above $17 per ounce, closing at 13-month highs.
Calmer days are expected ahead for next week, as markets reach the last two weeks of August, with no major news on the agenda globally and trading volumes typically decreasing as global investors take some vacation time.